Capital Gains & Losses
Are Stock Short Sales Reported To The IRS ?
A short sale is a sale of stock that you do not own but borrow for purposes of the sale from a broker. Brokerage firms are required by the IRS to report all stock and bond security sales, including short sales. A short sale is considered a sale according to the IRS regulations and must be reported to you and then indicated on form 1099-B.
Note If you need professional help with "Capital Gains & Losses" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.